Astonishing decline in US first-quarter GDP, Trump blames Biden
The US economy unexpectedly turned negative in the first quarter, marking the first contraction since 2022, and President Trump blamed this reversal on his predecessor Biden on Wednesday.
This billionaire Republican, who has vowed to make America wealthier, had to face grim data on Wednesday: the domestic product [GDP] of the United States fell in the first quarter, while the American economy continued to thrive until the end of 2024.
According to preliminary estimates released by the US Department of Commerce on Wednesday, the annualized GDP of the United States contracted by 0.3% in the first quarter, far below the 2.4% growth in the fourth quarter of 2024.
However, Trump attributed the economic contraction in the first quarter to the previous administration led by Biden. He stated on his "Truth Social" platform: "Our country will soar economically, but first we must rid ourselves of Joe Biden's leftovers."
"This will take time; it has nothing to do with tariffs; it is just that he left us with poor statistics," the head of state said, urging his fellow citizens to "be patient!!".
Later, Trump appeared confident at a cabinet meeting, praising the arrival of massive American investments. He boasted that China has been "knocked down" by the tariffs he imposed, with "factories shutting down across the country," because "we no longer buy their products."
Trump added, "I didn't want this to happen," then said he "loves" China and "hopes" to reach an agreement with the Chinese government.
However, the opposition Democratic Party believes that the American economy is heading toward a dead end. Senate Democratic Leader Chuck Schumer said, "Donald Trump should acknowledge his failure, step back, and immediately fire his economic team."
Analysts point out that part of the reason for the decline in US GDP in the first quarter is related to the calculation rules, which deduct imports from national wealth production.
Due to companies and consumers rushing to purchase certain goods before they became more expensive due to new government-imposed tariffs, overseas purchases surged at the beginning of the year.
However,提前购买 means reduced future spending, and the risks associated with this may show up in future economic data releases.
The American economy had previously been performing well, with a growth rate of 2.4% in the last quarter of 2024, achieving full employment and largely controlling inflation.
Another data release on Wednesday showed that job creation in the US private sector slowed significantly in April, falling short of expectations.
As another driving force behind US GDP—American consumption is being closely watched, as some recent indicators suggest that Americans' confidence in the future has plummeted sharply.
Source: rfi
Original article: https://www.toutiao.com/article/1830872069366796/
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